TMC Financing Arranges SBA Loan
The long-time operator/lessee of a small six-bed assisted living community in La Jolla, California was able to secure SBA 504 financing to fund his purchase of the property for $1.5 million, or $250,000 per bed. After a 15% down payment, TMC Financing arranged about 35% of the total transaction cost with a $537,250 SBA loan, which came with a below-market interest rate fixed for 25 years. First Choice Bank provided the remaining financing. Read More »
Land and Buildings Strikes Again
Still trying to get two board nominees, Land and Buildings steps up its criticism and need for change. Well, well, well. Jonathan Litt of Land and Buildings is at it again, this time with a six-page letter to Brookdale Senior Living shareholders, eviscerating Brookdale’s management and board, past and present, for the company’s severe underperformance over the past 10 years. So, what else is new? Look, management and much of the board has changed and the only ones who can be blamed for the disastrous Emeritus acquisition are the old management, the former board and perhaps their advisors, who should have known better. Highlighted in his letter was the underperformance of Brookdale... Read More »
Locust Point Starts Equity Financing Program
Debt is certainly plentiful these days in the seniors housing and care market, leading us to a record level of M&A and investment in the industry. But what about equity? That can still trip up investors looking to purchase or develop a seniors housing property, especially if they have to raise it among family and friends, or from their own personal funds. But alternative asset manager Locust Point Capital is announcing its own project equity financing program for the seniors housing industry. The program will provide owner/operators with between $1 million and $10 million of equity capital for the construction, substantial renovation and/or acquisition of independent living, assisted... Read More »
Meridian Capital Group On Track for Another Big Year
The seniors housing and healthcare team at Meridian Capital Group has already had quite the year, reaching $1.3 billion in closed transactions so far. That total is spread across 41 deals in 22 states. Well done to Ari Adlerstein, Ari Dobkin and Josh Simpson. Some of the recent highlights include an $80 million acquisition financing and a $7.5 million AR line closed for five skilled nursing facilities totaling 740 beds in Pennsylvania. The acquisition loans didn’t stop there, with the team also arranging $38.5 million in financing for a borrower acquiring three SNFs and refinancing five additional facilities totaling 840 beds in Minnesota and Wisconsin. Then, in Massachusetts, the buyer of... Read More »
Local Doctor Buys Rural Texas Assisted Living
Using his expertise in the Texas M&A market, Matthew Alley of Senior Living Investment Brokerage sold an assisted living community in rural east Texas for $2.8 million, or $56,000 per unit. Originally built in 1994, the 50-unit community is the only licensed assisted living property in Franklin County. It includes 68 licensed Type A beds, and at the time of marketing, it was about 58% occupied, generating about $50,000 annually in EBITDAR on over $840,000 in revenues. Its independent owner/operator was looking to exit the seniors housing industry, ultimately selling the community to a local doctor. That medical knowledge can’t hurt in turning the community around. Read More »
Cushman & Wakefield Arranges Equity for New Jersey Development
Acting as exclusive advisor to a joint venture between Pike Properties, Thrive Senior Living and Gallium Real Estate, the Cushman & Wakefield team of Richard Swartz, Jay Wagner and Jim Dooley arranged institutional equity capital for a to-be-built senior living community in Montvale, New Jersey. Located on an 11.5-acre site with a spacious 33,000-square foot interior courtyard, the development will feature 203 units of independent living, assisted living and memory care. The $26.5 million of equity (provided by a private equity fund) will complement $54.6 million of debt financing from another seniors housing lender. Read More »
Recent Senior Care M&A Deals, Week Ending July 26, 2019
Check out our recent senior care M&A deals. Long-Term Care AcquirerTargetPrice Baptist Homes of IndianaThe Barrington of Carmel$61 million National Health Investors, Inc.Legacy Commons of Pueblo West$7.5 million New Jersey-based owner/operator3 skilled nursing facilitiesN/A Local doctorThe Mount Vernon House$2.8... Read More »
Ventas Reports Second Quarter Results
Ventas (VTR) was the first one out of the block to report second quarter earnings, and while the results were about as expected, on the seniors housing and care side the turnaround has still not arrived. In fact, the second quarter was disappointing but not unexpected, given all the quiet industry talk about census, margins and staffing costs. One caveat is that just four companies make up two-thirds of VTR’s seniors housing and care portfolio, and one can question whether they are representative of the industry. But since two of the four are Atria Senior Living and Sunrise Senior Living, we are not talking about the dregs of the sector. For the seniors housing operating portfolio (SHOP),... Read More »
Newmark Knight Frank Closes Refi
The Newmark Knight Frank (NKF) Seniors Housing team, led by David Fasano & Sarah Anderson, recently closed on a refinance for a 145-unit IL/AL/MC community located in Brown Deer, Wisconsin. A large private equity firm with significant experience in the senior living business, along with their operating partner, New Perspective Senior Living, secured financing from a large regional lender. The relationship marked the first transaction between NPSL and the lender, and this was one of the first debt transactions that the NKF team has completed start to finish since joining NKF. Read More »
NHI Grows Its Colorado Portfolio
National Health Investors has added another property to its growing portfolio. Paying $7.6 million, or $149,000 per unit (including $100,000 of closing costs), the REIT acquired a 51-unit assisted living community in Pueblo, Colorado. Built in 1997 with an addition in 2008, the community was 96% occupied at the time of the sale. Cappella Living Solutions, which is owned by the not-for-profit Christian Living Communities and operates a portfolio of 26 communities, will take over the lease, under a 15-year term and an annual lease rate of 7.25%. The agreement included a CPI-based escalator with a floor of 2% beginning August 2020. NHI funded the deal with proceeds from its revolving credit... Read More »Schedule a demo
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